What obligation do Dq Treat managers have regarding confidential information?

According to Dq Treat's 2025 Franchise Disclosure Document, designated or assistant managers with access to confidential information must adhere to the confidentiality obligations outlined in the franchise agreement. This means Dq Treat franchisees must ensure their managers understand and comply with these obligations.

The FDD specifies several key aspects of these confidentiality obligations. Managers cannot make unauthorized copies of confidential information in written form, nor can they input or use such information in any open-source artificial intelligence program. They must also implement reasonable procedures to prevent unauthorized use or disclosure of confidential information, including restricting disclosure to other restaurant employees. Additionally, managers are prohibited from reverse engineering, decompiling, or disassembling any of Dq Treat's proprietary products, formulas, ingredients, or software.

Confidential information is defined broadly as the methods, techniques, formats, marketing and promotional procedures, specifications, information, recipes, the Operations Manual, systems, costs, and knowledge related to operating a Dq Treat restaurant under the System. This encompasses virtually all aspects of the business that are not generally known to the public. However, the restrictions on disclosure do not apply if the manager is legally compelled to disclose the information in judicial or administrative proceedings, provided they make their best effort to maintain confidentiality and give Dq Treat the opportunity to obtain a protective order.

These confidentiality requirements are typical in franchising, as franchisors need to protect their proprietary information and maintain a competitive advantage. For a prospective Dq Treat franchisee, this means carefully training managers on what constitutes confidential information and the importance of safeguarding it. Failure to comply with these obligations could result in legal action and damage to the Dq Treat brand.